NEW DELHI: The government is all set to add one more investigating agency to unearth the murky IPL saga with the ministry of corporate affairs (MCA) actively considering engaging its specialised arm, the Serious Fraud Investigation Office (SFIO), to probe the internal operations of the IPL franchises.

This follows an internal finding by the Registrar of Companies (RoC) that the franchisees have not been transparent in their management and fund-raising.

The RoCs, which were asked by the ministry to collect details about the team's ownership structure, managerial remuneration and the last three years' financial statements and returns, have found that the disclosures have not been appropriate, for which show-cause notices have been served upon two of the franchisees. "There are several missing links," a ministry official said, adding that the case merits a SFIO probe.

SFIO, as a specialised agency, is armed with experts in the field of accountancy, forensic auditing, investigation, company law and taxation.

With three specialised agencies of the finance ministry are already engaged in the investigation, the SFIO will co-ordinate with the other agencies and look into allegations of unaccounted source of funds. The Income-tax department, Enforcement Directorate and the Department of Revenue Intelligence (DRI) are the agencies that are already investigating the case.

Last year, SFIO had done an extensive investigation in perhaps India's biggest corporate scam involving Satyam Computer Services and its disgraced promoter B Ramalinga Raju. The investigation agency had submitted a 14,000 page report unearthing startling facts that an ex-Satyam employee had acted as catalyst forcing Raju to write his infamous confession letter. It had also pointed out that two-thirds of the $150 million that Satyam Computer Services raised from US investors through an issue of American depository shares (ADS) in 2001 was not traceable.

RoC officials from various states, where the franchisees are registered, on Wednesday briefed MCA officials about their preliminary findings. "It has been highlighted that the franchisees entered into wrongful arrangements with its directors by taking guard against hazy disclosures by the firms which owns them," the official said. The RoCs, which are still in process of collecting information about the companies, have informed the ministry of corporate affairs of shadowy filings, and have already shot off show cause notices to franchisees like Kolkata Knight Riders and Rajasthan Royals.

Even though SFIO's investigation looks into aspects of Company law violations, what gives it the edge into financial frauds is its ability to initiate inter-departmental probe as is found necessary required in the present case, the official said, requesting anonymity.

As per the charter which formed the SFIO, the agency takes up cases where there are inter-departmental ramifications and has a substantial involvement of public interest. SFIO, which was set up in 2003 in the wake of financial frauds by non-banking financial companies, presently does not initiate investigation on its own and all cases probed by it investigation follow orders from the government.

Meanwhile, minister for corporate affairs Salman Khurshid said on Wednesday that the collection of details by the RoC is part of the ministry's "due diligence" process as some IPL teams have not filed their annual return. "Prima-facie as far as balance-sheets are concerned we can say there is nothing unnatural. There is no sweat equity issue in the eight IPL teams so far," he said.